Preferential Trade Agreements as Stumbling Blocks for Multilateral Trade Liberalization: Evidence for the US

Limão, Nuno
Authors registered in the RePEc Author Service: Nuno M. Limão

No 4884, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Most countries are members of preferential trade agreements (PTAs). The effect of these agreements has attracted much interest and raised the question of whether PTAs promote or slow down multilateral trade liberalization, i.e. whether they are a ?building block? or a ?stumbling block? to multilateral liberalization. Despite this long-standing concern with PTAs and the lack of theoretical consensus there is no systematic evidence on whether they are actually a stumbling block to multilateral liberalization. We use detailed data on US tariff reductions during the most recent multilateral trade round to provide the first systematic evidence that the US?s PTAs were a stumbling block to its multilateral liberalization. We also provide evidence of reciprocity in multilateral tariff reductions that amplify the stumbling block effect.

Keywords: Preferential trade agreements; Multilateral trade negotiations; Mfn tariff concessions; Reciprocity (search for similar items in EconPapers)
JEL-codes: D78 F13 F14 F15 (search for similar items in EconPapers)
Date: 2005-01
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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